This transcript has been automatically generated and may not be 100% accurate.

... the ... lets some of your body might be in it that might mean that you will Facebook ... even if he said I'm staying far away from that stock offering ... but we got to light here to tell us ... how it is that so many mutual funds ended up owning Facebook it was a lot of what was this is the former Sega and unceasing Mitchell funds that picked up the stock so far ... this is as of the and in a store looking at fines that make monthly disclosures ... which is a smaller pool was is multiple most mostly it opens only disclose quarterly so that they will no doubt be even more once the square with the school just now ... but more than half of the initial Pfizer people's for one K plans for talking to the biggest ones in the world ... current Fidelity's Contrafund eighty one billion dollars in assets the peak of ten million shares ... a lot of fun is that people get from brokerage houses a Morgan Stanley Mitchell funds ... had more than five percent of the portfolio is allocated to Facebook so was that that the series allocation of all why would this be an issue someone has a ... technology beach stock mutual fund or a growth stock mutual fund ... should expect that this book in there ... yet definitely a the predominant buyers of Facebook with these Large Cap Growth Mitchell funds which you're expecting ... but the rear for funds that where it doesn't make any sense ... that a full value funds that picked up the stuff in and nobody considers Facebook a value stock at this point that that that that it may be down twenty five do I know I didn't even at twenty five are still the still yes ... exactly ... um does to lease one dividend ... over when ... she enough value stock up on screen here we have some of the big funds that have Facebook Lizzy said Fidelity Contrafund ... Oppenheimer mean streets right ... right rate now is to say that the boy and didn't find that it took the stock obviously Facebook doesn't pay a dividend ... when they do something like that well I mean you you gotta be thinking that a lot of them were expecting that pop right right right after keno ... gotten can have a ... herd mentality where they know that they buy the stock even if the stock to perform well which is in the end of doing right we still be wrong with a lot of other people wouldn't open it and when vendors are most afraid of are being drawn in being alone ... in this case the wrong but with much of the biggest indictment of the industry says that they know they're ... they're afraid that they're under for the benchmark as opposed to ... the freedom to lose your money it's ... no wonder the public to fund managers is they have ... in addition to risking investors' money they have their own rinse their career risk right ... it is the wrong with everybody else and read the fire everybody ... says so in that sense they're ... protecting themselves but back to one thing you mention their Morgan Stanley funds with a lot of this stock ... the Morgan Stanley of course was the lead underwriter of the Facebook offering whatever this in your story this morning it but you know ... this is ... this really does not look good it looks like Morgan Stanley turned to its FundAlarm ... Anson start buying the stock to support the stock may you hope that wasn't happening but that's what it looks like it whatever this is the question what Morgan Stanley declined accounted for the story ... we do know that they also owned a lot of shares before the IPO to seven hundred shares ... so so some cases with these phones it is building off of that existing position ... the manager who took a big stake and Facebook Eisenstadt's Lancz ... ATT was the focus fund so it's not uncommon for him to have to do more than five percent its portfolio allocated to an individual stock ... but having you know a ten percent allocation to Apple which is a huge part of the index were quite different than having it be a seven percent allocation of Facebook ... is a very small part of the index's by dealers company ... well I mean that's the other thing be on Morrison which is surprising is it does look like some EK for thinking he let's get in on hot offering will get the pop and just quickly make cash ... we think is is a lot people for one K's think these funds are in there ... that much steadier in terms of their investment philosophy nowhere when you when you think about a ... core portfolio whole holding with Billy Contrafund ... refined the has no mainstream that I don't know thinking if I would think it ... was the pick of large cap growth stocks ... we got the gift was to get in on IPO you know right after the IPO happens with a huge huge amount of volatility ... so I think that that that that did the par for fund investors is that these funds is still a ... pretty small part of Bahrain